Russian Economy Continues To Contract in Q2

In the second quarter of 2013, Russian GDP shrank by a seasonally adjusted 0.26 percent over the previous quarter, after contracting by 0.25 percent in the first three months of 2013. The rebound in mining was not enough to offset the drop in manufacturing.

On the production side, mining and quarrying grew the most (up by 2.9 percent, quarter-on-quarter, from a 2.7 percent fall in the first three months of 2013). In contrast, fishing dropped by 3.34 percent (down from a 3.7 percent expansion in the first quarter); construction shrank by 1.37 percent and manufacturing contracted by 1.2 percent.

Activities related to real estate, renting and business activities grew 1.4 percent quarter-on-quarter, health care and social services went up by 1.2 percent, other community, social and personal services increased 1.2 percent and hotel and restaurant services accelerated to 1 percent. In contrast, financial activities went down by 1.7 percent quarter-on-quarter. 

On the expenditure side, gross fixed capital formation fell by 1.16 percent. While both household and government spending slightly decreased (-0.18 percent and -0.23 percent, respectively), exports and imports accelerated to 0.9 percent and 0.84 percent, respectively. ,

Year-on-year, the Russian economy expanded by 1.2 percent, the slowest pace in three years.

Russian Economy Continues To Contract in Q2

Krisztina Györffy |
10/1/2013 3:57:39 PM